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tv   Keiser Report  RT  January 31, 2013 5:30pm-6:00pm EST

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wealthy british. time right. markets why not. find out what's really happening to the global economy with mike's concert for a no holds barred look at the global financial headlines tune into cars a report on our t. . he.
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welcome to the kaiser report episode number four hundred imax kaiser for four hundred up a says they've been exposing markets finance scandal jamie diamond silver liberation german gold collateral faking zombie banking paper printing the bond apocalypse currency wars oh.
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yes max so bill's above is in the headlines but first i want is set this up in that you and i watched an interview with the legendary photojournalist who is often a war war reporter don mcmullen and he said referring to his time in vietnam he said that he often slept next to corpses and in war one gets used to that and of course kaiser report is a financial war report and it made me realize with all these dead bang see zombie banks and zombie economies it seems that people have gotten use to just the corpses all over the place and they don't even notice the smell any war is down the colon refer to so of course i have this image of bill's above that's not even a doctored photo it's not a william seven it is the president last week when i fly landed between his eyes and of course either he's above or their corpses around him and somebody and abroad . did send me this image and this is jamie dimon what he really looks like her she
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is a filter and instagram filter that shows the true nature of the subject oh absolutely in a war setting the corpses stink and they rot and you can smell them but here in the financial war banks like ages b.c. lloyds barclays royal bank of scotland they're they're run by zombies they're dead they're rotting but you don't smell it because that the rotting banking system doesn't doesn't emit an odor. such so people are not aware that they're walking amongst the dead the british pound is a zombie currency and the british bankers are all necrophiliac loving the zombie bankers and banks stirrers and this is what we do we report on it we're on the front lines exactly but i think there is an awful stench we all did smell it in two thousand and seven and two thousand and eight people were panicked people. scared
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people that was this because of the stench of the banking system but people are used to it now and they just think oh well you know my horsemeat burger and they move on but you know four hundred episodes in to the kaiser report this financial war report many of the themes we've been looking at are starting to come true one of them as you mentioned in the opening is currency wars so let's look at this first headline of the past week the big headline save this for episode four hundred this is russia central bank to keep buying gold. of the russian central bank will continue to buy gold as it seeks to diversify its foreign reserves away from paper assets it views as risky first deputy chairman alexey of said on thursday oh yes well we've been talking about two trends over these four hundred episodes number one is the bond apocalypse which is coming and now in death of warning about it in the bank bank of america just issued a report saying that the bond market is ready to go through one thousand nine
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hundred ninety four type crash so you're going to spike higher the governments because they're half dead because there's obviously we're incapable of managing this economy in such a way as to effectively transition to a higher yield normalized environment they let instead the bond bubble built to three hundred year exchange now the bond pocalypse is upon us and russia quite smartly and china and other countries around the world are getting ahead of this by buying gold and they're buying gold aggressively as we've been saying that they should do yes now the first stage of this financial war was characterized by the fact that the banks didn't trust each other there was no interbank lending and now this sage of central banks and governments not trusting each other is of course like the first great depression the previous great depression anyway you know that starts to lead to world war is now the bank of russia has built up the world's fourth largest foreign. reserves worth five hundred thirty billion dollars and ten
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percent of that is in gold. that's right and as we head into a hot war from the cold war which is a follow on to the cold war and so we're going to see the fireworks start to explode here shortly and of course the music is stopping and those who have the gold are going to be in a better position to countries that are in a horrible position would be britain and japan they have virtually no gold and they have they're totally exposed to the hyper inflation that's coming in things like oil now over here in the u.k. we've moved here because they said that the economy is going to collapse here they've announced recently a triple dip recession they're heading into triple dip recession the economy continues to decline. david cameron threw a hail mary pass of saying we're going to have some referendum in like five six seven years' time lord knows when somewhere out the future so that destabilizing
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this already unstable system but also here's a heaven from the past week this is very interesting because we interviewed simon rose of save our savers and he noted a few months ago that there's this weird confusion in the u.k. between deficit and debt the deficit of course is the annual budget deficit of the government and the national debt is built up over decades who knows how long it's been building up and how big it is it here it's close to one point four trillion pounds but david cameron tells porkies about britain's national debt david cameron on i.t.v. said this quote though this government has had to make difficult decisions we're making progress we're paying down britain's debt and now we're going to cut to a party political broadcast where he's telling these porkies he's confusing the british population between deficit and debt but i don't people don't just want to hear. they want to know the facts that's why we're letting people know exactly what
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this job much sheaves so far. i would say the deficit is going down maybe by one point five percent to three percent three percent of your skills are not i would say our side going to help with our trade it's gone down but i'm afraid there's a. good place but i think that's pretty good going i think that we've done well yes so the spectator referring to this political broadcast says as you can see people were asked to guess how much the deficit is going down they guessed low figures two percent excedrin and are then told that it's actually twenty five percent then they say how impressed they are with the tories have you spotted the trick. new normal person knows what deficit means nor should they they're saying it's a policy wonk the word that they're just using to confuse people this is financial
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propaganda statistical propaganda so you flood the market with bogus numbers yes the debt in the u.k. is now one point four trillion and it's spiking sense the coalition government came into power but what people don't mention is that the total indebtedness of the u.k. if you include private debt on the balance sheet of the corrupt four major banks of fraud that's another four trillion pounds of debt so it's not one point five trillion a one point four trillion of debt it's actually five point four trillion in debt it's a three four five hundred percent g.d.p. number and that's why this economy is severely in encumbered and has no prospects of growth whatsoever because it's one of the most indebted countries of all the g. twenty countries i think it may even in fact be the second most indebted of all the g. twenty countries now. t.v. poll the population here and only six percent six percent of the u.k.
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population realised that the national debt has been increasing ninety four percent didn't know this because of all of this propaganda when in fact david cameron's policy is to increase britain's debt by sixty percent more than any european country to increase it more over five years than labor did over thirteen years just yesterday we learned the national debt had hit one point one one billion pounds and it's heading to one thousand four hundred billion one point four trillion pounds which by the way is about what the cost of the bailouts of the u.k. banks is that that number the connection is not a coincidence and not only is the debt growing but there is no growth and it would be one thing if there was debt was rising in the growth was rising but you have growth shrinking negative g.d.p. a triple dip recession and rising debt so this economy and the pound sterling as
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we've been saying it's already crashed against gold but it looks like it's going to crash in relative terms against other currencies as well this british pound is is not worth the paper it's not printed on. and by the way i want to quote something that you said on twitter which is a quote of thomas jefferson to preserve our independence we must not let our rulers lotus up with perpetual debt we must make our choice between economy and liberty or pro fusion and servitude that was in a letter an eight hundred sixteen where he was saying we don't want to end up like the brits where we start taxing food drink labor at that time we weren't taxed on labor in the us and that this was the what was the problem with national debt is that you leave it for future generations and this is what the spectator notes in this article is that this is one of the most insidious sort of lies that you tell a population because the fact is that the national debt must be paid by our children and. and children well they also say that inflation is low however what's
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this horsemeat scandal about it's about swapping cheaper made for other made us inflation what's the tainting of food here in the u.k. about watering down the milk selling tainted food at the supermarket selling horsemeat for tell me that's a form of inflation you're swapping out cheaper goods for other goods and you're creating stealth inflation you know the portions are getting smaller you know you go to tesco and you buy a portions and they're less they're smaller for the same price so you're saying there's no inflation oh that's a lie there is a place in this goes back to the romans who during their inflationary period would clip the coins and you'd have a stealth inflation that's what's happening here now i do want to know at the comment on the you tube of this party political broadcast the people were buying his lies i just read you one of them i mean this is like the kindest of the comments on you tube from tink one eight eight the gallows are being loyal david you treasonous prick. well you know what's great about this country is they have
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a tower of law did you know that if they've got the infrastructure to decapitate the bad guys they just got to act on it alright stacy ever thanks so much being on the house report thank you max stay tuned for the second half hour be speaking to and williams of charteris treasury. will. technology innovation all the developments from around russia we've got the future covered. cretaceous three. four judges three arrangement three. three. three. moseley braun video for your media project a free video done to our t.v.
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dot com. the worst year for those. white house to give it to the radio guy and for a minute. what. to do if you've never seen anything like this until. i am x. kaiser welcome back to the kaiser report time now to turn to n.y.m. chairman and c.e.o. of charter us treasury portfolio managers and welcome back to the kaiser report ok
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last time you're here we're talking about sever you had a bold prediction you were looking for a hundred fifty dollars on silver it's up six percent already in twenty thirteen what's what's the update. well so far so good i mean it's. roughly in a small way what we what we thought we might do it's going up it's pretty much is going up every day this year and it's help of gold which is something else we thought would happen and we think there's a lot more potential in the navy i mean the u.s. marine the stock. sell in sulaco in their way bigger than theirs verisign or shortage position there is a shortage of developing the sober market is that correct this is just a massive demand for the silver coins in a comin them fast enough. and all supply of software is not that great that comes out of the ground right so it's been several million ounces exactly and unlike go when the big differences between gold and silver is the central banks sit in the
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way with tons and tons of silver in the central eastern only so they have loads of gold but they don't any so so so it's not this immediacy of supply that can suddenly hit the market people are confused by silver because it's both a monetary metal but it's also an industrial metal careers down solar and of course are these huge solar arrays being constructed around the world the use of silver now people are buying it as a monetary metal and there's another in thing relationship i'd like to talk for a thought about it between the price of solar versus gold in ounces or there's a relationship there historically it usually would be sixteen ounces of silver to one ounce of gold these days is what fifty or fifty three ounces of silver to gold is huge gap let's talk about that first of all on the solar panels it takes two thirds of an ounce of sue for every solar panels monied and as the technology starts to get more advanced. solar power is potentially the big
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big growth market in the emerging world it also lives in the home countries so countries like india. the potential increase in. solar pounds in a country like india which is an ever great national grid but i will also sunshine is phenomenal and then you look at all the arab countries and mean it what it's all about price is all about how it how solar is price relative to war oh but again if you look at. the got huge amounts of unused land in the desert but loads of money. but they got no water it's a no brainer some stage they get it's going to fill the desert up with solar panels and use the energy to convert seawater into into freshwater and so it's huge potential for solar is enormous fomor them on a global scale as only wind farms or so desalinization of seawater is also use with
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the solar array where you use the energy you use electricity in both the water and effectively combine the other moment that's what they do but they use oil to which is it doesn't cost them anything because he comes out the ground for virtually nothing but but has some stage you can see a situation where all these vost really rich countries and growing countries all around the world a solar power is going to be a major on to their energy let me ask a question of something outside of china i think may have maybe more insight into it but there was a report last week that production of the the apples twenty seven inch screen for their computer which uses silver they actually had a whole production because they couldn't source silver is a real problem and it was the same with the this u.s. mint com can't get enough silver to churn out these coins so they've had to temporarily halt sales of the coins but we know what's going to do is make people
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more interested in them you know if you hear something this massive demand for something and they've had to temporarily suspend silos it makes even more people interested in buying them and you know it's a poor man's gold so there are not silver exchanges in. the far east and in a much lower denomination amount of money so it opens the audience who want to invest in precious metals to a much much wider audience a lot more chinese citizens combust silver coins and they can afford to plug. now a lot of people talk about manipulation in the silver industry and in the gold and gold markets. you have gold but also so over there's a huge investigation into this and one thing i've noticed about the silver market whether it's the comix or the b.m.a. is that the quantity of sell orders that would knock the price of silver down a dollar is one fiftieth theme the number of buy orders that it would take to move
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the price of silver up a dollar in other words the way that the market is currently configured biggs. right there still is that there's a perpetual there's a constant seller there fifty times bigger than any buyer and of course and some days they sell one hundred percent of the annual production of silver a single day from that from that seller so it's kind of a foolish investigation if these markets are being manipulated because clearly with unequivocal a they are being manipulated with these huge sell it or that for the most part are naked short in a bank like j.p. morgan who is selling these naked short contracts they've got enormous exposure to their balance sheet and will point to the banks have to mark to market these enormous naked short positions and is this going to lead to a mark down of these banks and then from there i want to get into their exposure to the bond market a little bit but what are your thoughts on the choice of
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a handbag which is now part of j.p. morgan and this which was on the foreign exchange this was right next door to the gold bullion do so we see that she sit next to these guys and we didn't. to see them taking any big positions and a lot of what they did was customer driven so if it is j.p. morgan that goes into the futures market and sells you know a big lump of. very often or go very often they had a mining company or a customer that they would do it some financing deal with and it was purely hage and it's very easy. if you're a futures trader sit in the pit and j.p. mode come in and so a big lump of silver you don't know with their proprietary days you don't know with some of the loan agreement where they let the mining company some money and they've had to forward hedge out some production you don't know what drives the deal where you can see is them doing it you have absolutely no idea behind what driving the
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transaction they did the industry. the mining industry silver gold mining they have a need to hedge their output to lock in prices and to get some predictability in the earnings stream. variable i would look at like american barrett big gold miner for example they have gotten rid of all their hedges there they've cancelled their heads and their net buyers of gold in this market and we've seen in the last three or four years so i understand you're saying that there is an industry need to be hedging and you see this all the time but the industry's been unwinding their edges and we also have a very unseemly relationship between j.p. morgan who's got a ninety trillion dollar derivatives portfolio in the federal reserve bank in the treasury so is there a customer is there a customer of the federal reserve bank of the treasury how much of how much overlap is there it will only on the page and be hitching in the lane when the marketing go and so it was started off in sort of the end of the century most of the miners had big hedges on their books and those as the price rose of cools the shares of
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the of mine as it didn't have pages massively outperformed the ones with pages because the ones with pages weren't getting the full week's benefit of the rise in the gold price there's a huge shareholder pressured and for that on the likes of barack. as a classic example to buy back all the hedges which they gradually been doing but then if you if you or these banks still insist that if you're a mining company and you want to borrow money so again mining company wants to develop a mine or wants to do some cap ex in need some cash if you go to the bank the bank won't very reluctant to lend money to mining companies without locking in. some percentage of the future production so it's not that the mining companies want to hedge the production themselves very often it's the only way they could get the money the other way is to issue more shares which they share the existing shareholders so then so have the illusion and they don't want that either so very
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often if they if everyone is commits prices going up it's probably better to borrow money from the bank rather than issue shias and the bank will nearly always insist that thirty forty percent of the of the of the production is hage because it's they needs few days to risk a transaction for the bank because the price goes all over the place and they do they can't guarantee future repayment of the luck you mention mining there's a lot of talk about what you call peak gold or peace over how close are we to this seeming like south africa the gold is really down the trickle i mean that paid to eat is a serious so what about silver and gold how is it we hit peak gold peaks i'm in is probably about three or seventy to one ratio there's a similar amount along the thing sixteen seventeen times more silver in the cross than there is go so the if you look at the performance of the various mining companies it seems that the silver miners have fewer problems in expand in
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a maintaining the production than the gold mining companies a lot of the silver money is based in mexico and there's a lot of silver left behind from when the spanish first started mine in it it's what when they invaded spit. makes it and in a way there's not much gold left behind in south africa all the easy go did south africa was ripped is it can you mention mexico also with passage of nafta under clinton it allowed for north american miners encounter particularly to go down to mexico on a new trading engagement and reopen mines silver mines that have dormant for years and they get anything modern technology to track and sell for ok there's a silver coming out of the ground but seven million ounces but it's being bought up by the industry and we're running out of so around there is that worse at what point do we have a silver shortage crisis because you're saying two things there you are saying that supply is pretty ample but you're also saying there are shortages bottlenecks
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developing is it a distribution problem where we're at this point does it become we see the evidence that you know i think the what will happen is there is massive potential demand for so which is why we think the process will rise much and as the price rises the mining industry will respond to rising prices by salting to find some of the surplus stew is still possible to mine in mexico because as you rightly say when the spanish woman is where they could only dig out what was really easy because they didn't have access to those mobile technology so there's a still big lumps of silver the spanish never bothered who couldn't get out to the modern mind in this region get so but they're only going to do that in response to the high price so the high price comes first and then the mining activity will follow a target on servers one fifty is and. since you've been here you don't see any reason to step away from that from that price target is pretty much for filling the
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charter you're looking for i mean we only put this full cost out just before christmas it's already up six percent or seven percent this year it is already out performing. and we see the. continue ok we have about thirty seconds left i just wanted to touch briefly on what i call the bond apocalyptic guilt markets was in a three hundred year high it started to back off this is the u.k. bond market ready to correct this big to on. big time like like how badly how like where we going with the well off and needles in the last big. treasuries was it not you not before well a fellow long and i did bones full twenty five percent in six weeks and i think what you're going to see of the net coming to three is will make ninety ninety full of love it is to put in as a rotation from bonds into stocks and billion precious metals yes but yeah out of
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out of what will be did to be monetary cash and bones which is the value which is probably going to get inflated away into what will be real assets which will be equities mainly at the moment blue chip cookies and then it will trickle down into also into commodities and into ultimately the biggest beneficiary we think will be money is now absolutely all right even once we're out of time but thanks much again for being on the kaiser report ok thank you. all right that's all it's time we have for this edition of the kaiser report with me max kaiser and stacy herbert i'd like to thank our guest in williams of chargers treasury if you like to contact us please tweet us at kaiser report at facebook dot com forward slash kaiser report until next time x. guys are saying by all. this
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